Is now the right time to launch your start up? It is the challenge that many entrepreneurs face, a global pandemic and global recession are challenging companies and industries all over the world but times of significant change bring significant opportunity.
“Times of rapid and dramatic change can shift the tectonic plates of opportunity. “
There are numerous companies that have actually done very well at this time as lifestyle changes have created new demands.
Organisations that supply online solutions to buy quality food, fitness and home office equipment have all seen significant growth as people navigate what seems to be the new normal. And business models have changed too with emerging support for subscription for products as diverse as cleaning products, tea and toilet paper.
Four tests that potential founders should consider before launching a new venture:
- Compelling Opportunity – Identifying compelling evidence of customer pain – often founders look to their own experience and see the clear gap in the market.
- Winning Industry Knowledge – and skills to properly envision a product or service that is different to competitors, fits into the service value chain, can scale and meet customer demand.
- Drive – and passion to surmount the startup obstacles which will come and creates problems when you least expect them.
- Sufficient Cash – I love the phrase sweat equity, but there is a limit to how much can just be delivered by what you bring to the enterprise yourself. Scale requires investment in people, technology and other resources and you need to have a plan to fund your runway.
- When asking the question is now the right time to launch, founders need to look at the drive, passion and commitment they have to the idea is something they truly believe in.
- Make sure that there is a business, that the disruption that comes from the changes of the pandemic are sustainable and that business model is sound.
- Having sufficient cash and the resources to deal with the unexpected obstacles that are likely pop up.
Synopsis of an article from Inc. 4 Tests For Launching A Venture In The Pandemic - Relieving customer pain that rivals are ignoring will give your startup a head start By Peter Cohan Published: 7th October 2020 https://www.inc.com/peter-cohan/4-tests-for-launching-a-venture-in-pandemic.html and from Forbes Startup Opportunities Driven By The Pandemic And A Stay At Home Consumer by Bernhard Schroeder Published: 18th September 2020 https://www.forbes.com/sites/bernhardschroeder/2020/09/18/startup-opportunities-driven-by-the-pandemic-and-a-stay-at-home-consumer/#66a34cff5c40